Sen. Debbie Stabenow says government investment in electric vehicle production and infrastructure will better position Michigan manufacturers to compete in a global economy.

"Our companies have been competing with countries for years," Stabenow told host Frank Beckmann this morning on WJR-AM 760. "So now we're saying we're going to partner with them."

Stabenow today is re-introducing legislation she first proposed last year that would replace an existing $7,500 tax credit for plug-in electric vehicles with a rebate available to consumers at the time of purchase. Five production vehicles currently qualify for the incentive, including the Chevrolet Volt, Nissan Leaf and Tesla Roadster.

The legislation also would provide businesses with a tax credit worth between $15,000 and $100,000 for the purchase of medium- and heavy-duty trucks, expand tax credits for charging station installation and renew a public-private partnership to boost advanced battery production.

Listen to Stabenow:

"In Michigan, we've added companies and put people back to work making batteries," Stabenow said. "I think if we were able to extend the investment in battery manufacturing and component parts for our suppliers, it just means more jobs for us."

Beckmann, obviously skeptical of the proposal, challenged Stabenow on a number of fronts as the Congresswoman made her case. Some highlights (questions paraphrased except where noted):

How long do we "need to pay people to buy cars"? This is a new technology. Just as the first cell phones and computers all were more expensive at the beginning, as the volume picked up and more people bought them the prices have come down dramatically. The same thing is true with automobiles. We really have a stake as a country in having these be successful. And also, from a standpoint of saving energy, saving gas for people. We know that once a lot of people look at these, buy these, the cost is going to dramatically fall and then I don't think you need the tax credit any more.

But we offered subsidies for ethanol-based hybrids and they haven't sold well, how is this different? I think this is really a success story for us. We're seeing new companies that are forming for advanced battery manufacturing. We're competing around the world. We're competing with Toyota, for instance, where they government of Japan paid for almost all of the initial research for Toyota to create batteries for the vehicles. Our companies have been competing with countries for years. so now what we're saying is we're going to partner with them. Understanding they're competing with other countries that are paying for everything, we're going to partner with them and put some dollars into investments in batteries, which are creating jobs.

But you're taking one taxpayer's money to subsidize someone else's purchase? We've been subsidizing energy policy for over 100 years. Over 100 years ago we started giving these big tax breaks to oil and gas companies because we wanted to industrialize America. And it worked. We did that. We created all these incentives to be able to go out and use oil and gas. ...Taking a little bit and moving it over the clean energy of the future and, by the way, creating jobs in Michigan, I think I'll take that one.

But why add spending? I don't know any business that doesn't invest in order to grow. That's what we need to do in this country. We need to be smart. We need to cut where we need to cut. But also we need to invest, to be be able to grow ... That's what every business does. That's what every country does. Because if we're going to out-compete in a global economy, we've got to be willing to invest in innovation.

Won't it add to deficit? There's no question debt is a huge issue. But here's what I also know, and I think we here in Michigan understand this better than anybody, we're never going to get out of debt with more than 15 million people out of work. So we better be focused on jobs. That is going to allow us -- supporting businesses to grow and be successful and hire people -- that's what's going to ultimately get us out of debt.

Listen to the full WJR interview in the embedded player above to hear Stabenow discuss her thoughts on Big Three Super Bowl commercials and more.